Borrow Up to 80% of Your Property Value
Caveat loan is suitable for all business types and sizes with flexible repayment structure available to cater for your business cash flow. It is a perfect and quick solution for those who are asset rich but have an unstable business cash flow to resolve, allowing you to overcome any immediate business hurdles. A caveat loan is applicable to all properties Australia wide, and you can borrow up to 80% of the property value. In some cases, properties with a LVR over 80% may still gain an approval. Use this finance option to elevate your business to the next level.
All Property Location Accepted
LVR over 80% Considered
Leverage Business Growth
Caveat Loan Explained
Caveat in simple term is referring to an interest that is lodge on the property title. The interest is usually related to a monetary agreement although it is not always the case. There are very little differences between caveat and mortgages for a property owner when it is related to a loan as the debt obligation remains the same. However, caveat is much easier to register in comparison to mortgages hence application process is faster and simpler which is perfect when funding is required urgently.
Refer to FAQ below for more information about caveat loans.
Caveat Loan - Fact Sheet
| Best suitable For |
|
|---|---|
| Settlement Time* | 2 to 5 business days |
| Loan Term | Up to 36 months with Extension Option |
| Repayment structure | Normally Flexible or Interest Only Repayment |
| Indicative Loan Amount | $10,000 to $50,000 |
| Asset Eligibility Criteria |
|
| Financial Statement | Optional |
| Dedicated Account Manager | Yes |
| Tax Deductible | Yes |
| Interest Rate | We are very confident that our rate is one of the lowest in the market, if you do find a lower rate, let us know, we will try to beat it. |
| Save Interest |
|
*Turnaround time is indicative only and after signed loan contract is received. Fund transfer is subject to fund availability and settlement condition satisfied.
Not Sure Which Loan?
Not sure which loan product and features are best for you? Use our comparison
table. Otherwise, reach out to us. We’re happy to help!
FAQs about Caveat Loan
The average approval of a caveat loan is $10,000 – $50,000 if a property LVR is below 80%. However, in some instances properties with high LVR between 80-100% may still qualify for a caveat loan with a minimum of $3,000. Speak to our teams now to find out what is available to you and your business!
Fundspot recognize it is difficult for business owners to maintain perfect credit history when finances are not often stable; hence all applications are reviewed on a scenario basis. Tell us your story today and our Business Managers will let you know of your finance options.
LVR is a finance jargon stands for Loan to Value Ratio, calculated by using the property value and the debt owing on a real estate property. It is a percentage that commonly being used in the finance industry to determine the likelihood of available equity on the property. Every lender has a slightly different way to interpret the ratio. Traditional banks and most lenders would normally lend up to 80% of a property value (i.e. 80% LVR). If the property is already at 80% LVR, many lenders would decline the application. However, Fundspot is able to consider LVR beyond 80% with an approval. Also refer to Fast Business Loan for more information.
Applying for Fundspot is very simple.
Step 1 – fill in the obligation free application form online and tell us more about your business
Step 2 – provide your driver license, bank statements and council rate
Step 3 – wait for some good news from your Business Manager
There is no restriction to the types of property as long as they have a registered Certificate of Title with the respective government land offices in Australia. This includes residential house or unit apartments, commercial offices or shops, industrial showroom or warehouses, lands and farms.
1. It is difficult to obtain a caveat loan.
To obtain a caveat loan is simple and quick for real estate properties that are located in prime locations in the major cities. For properties that are located in more remote area, it may take a few more hours than usual but the application process remains the same.
2. Caveat loans are better than 2nd Mortgage Loan.
Depending on the circumstances, sometimes caveat loans are indeed better than 2nd mortgage loan as it is easier and faster for lenders to register a caveat than a mortgage; and in return loan settlement is much quicker. However caveat loans often has a lower approval compare to 2nd mortgage loan, hence the myth is only partially true weighing between speed and loan amount. For find out more what is more suitable to you, speak to our Business Managers today.
3. Caveat loans forbid the properties to be sold or refinance.
Property owners can continue with all the plans as usual and caveat does not stop the properties from being traded or refinance, simply notify your solicitor/conveyancer and finance broker of the caveat and they rest will be arranged for you.
4. The lender will sell the property if the loan is in default.
Lenders often do not have intention to repossess the property as it increases cost and workload. If your loan account is in arrear, be sure to be honest and genuine, stay in contact with the lender and arrangement a payment plan.
5. The bank does not like caveats.
Caveats often do not bother the banks. However, it will be of their concern if you are applying for a new credit and there are insufficient serviceability for the new application. If you are in the process of applying for a bank loans and also considering to apply with Fundspot at the same time, be sure to speak to our Business Managers. Please note that Fundspot do not provide financial advice, and you should consult with your finance broker and accountant for more information.
